There are quite a few reasons to believe that more stimulus checks are on the way and in this article I will talk about a few of those. 

I do want to make clear that having another round of stimulus funding go out in the form of stimulus checks is not necessarily a “good thing.” 

That’s because it likely means that the economy is struggling to improve and that jobs are not coming back as quickly as we would like.

And most importantly, it likely means that the coronavirus is still plaguing our communities at a rate that still poses a major threat to public safety.

With that said, I do think that stimulus checks will be a good thing for many people. It will help provide them with much-needed financial relief and give them something to look forward to during these difficult times. So here are some reasons why I think more checks will be coming, likely in August.

Coronavirus cases are on the rise

Coronavirus cases are rising in at least 20 US states. Some states like Texas and Arizona are having record high days of cases. And in some locations, hospitalizations are on the rise similar to how they were during the peak.

Initially, a lot of this was blamed on an increase of testing.

That certainly has a lot to do with the rise in overall numbers but when there is also a rise in hospitalizations, that’s when you know that the infection rates are accelerating.

It’s starting to look like some places have opened up too quickly and that additional lockdowns will have to be implemented.

They may not need to be as strict as what we saw back in March or April, but I have a feeling that some areas will have to return to some form of lockdown if these rates continue.

That means that many people will struggle to get to work and the argument for an additional round of stimulus checks will be that much stronger.

Companies are filing bankruptcy

We just saw a wave of large companies filing bankruptcy at a rate not seen since the Great Recession of 2009. In May, 27 companies reporting at least $50 million in liabilities sought court protection from creditors. This included companies like J.C. Penney Co. and J. Crew Group Inc. Latam Airlines, and Avianca.

There will surely be more to follow and I see these bankruptcies as an indicator of the reality that the economy is still going to be in shock for quite some time.

Businesses are not paying rent

According to the Washington Post, almost half of commercial retail rents did not get paid in April and May. Again, this is yet another indicator showing that businesses are struggling meaning that business owners and their employees are also at risk.

Federal Reserve Chairman Jerome Powell just warned that the U.S. economy faced “a long road” to recovery and expects things to be bad for a while. When talking about the perils that Americans face right now he stated, “It’s possible that we will need to do more, and it’s possible that Congress will need to do more.” 

So even though I think the very worst of coronavirus is probably behind us we still likely have very much of an uphill climb ahead of us. It’s going to take a lot of time to get millions of these jobs back and there are businesses both large and small hurting all over.

Considering that there is an election coming up in only a few months, I really can’t see how an additional round of stimulus checks won’t go out. Too many people will be in need. 

Even though I would prefer for the economy to open up safely and for people to be able to get back to work, I just don’t think the data is showing that that is going to be possible for right now — at least not in certain states.

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